Manufacturing activity remains robust, especially demand, with the U.S. and global economy continuing to rebound from the sizable declines in spring 2020. Real GDP and manufacturing production now exceed pre-pandemic levels, which is encouraging. And yet, significant challenges remain, including supply chain disruptions, worker shortages and soaring costs.

The Manufacturers’ Outlook Survey for the third quarter of 2021 found 87.5% of respondents felt either somewhat or very positive about their company outlook, down from 90.1% in the second quarter. The NAM Manufacturing Outlook Index measured 58.4 in the third quarter, down from 60.2 in the second quarter. The data are consistent with solid growth in manufacturing activity, but with some easing from more rapid paces in the second quarter, when the outlook had registered the best reading in nearly three years and some measures had reached record highs.